The Difficulty Of Recovering Patent Damages To A Subsidiary

Law360, New York (August 5, 2014, 10:15 AM EDT) -- With today's complex, tax-driven, corporate family structures, the entity that owns patents in a corporate family structure is often different than the entity directly harmed when others infringe those patents. For example, in the electronics industry, intellectual property is often developed and owned by a U.S. parent while manufacturing and sales are done through an Asian subsidiary, thereby taking advantage of lower foreign manufacturing costs and beneficial tax structures. But, when a competitor cuts into the subsidiary's profits by selling an infringing product, can the parent sue for infringement to recover the profits it has lost? Based on current case law, this can be a challenging proposition for the parent....

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